In January 2023, Xiaomi-backed Chinese gaming phone maker Black Shark underwent severe layoffs, reducing its workforce from over 1,000 employees to just over 100, meaning hundreds were cut, representing a drastic reduction of roughly 90%. The company cited tremendous operational difficulties following a failed acquisition deal with Tencent Holdings. Multiple rounds of layoffs since August 2022 culminated in affected employees receiving incomplete severance payments, with some reporting as little as 2,000 yuan, sparking public outcry on social media. Black Shark, operating in the competitive smartphone and gaming hardware industry, pledged to address its funding issues to fulfill remaining severance obligations.
